easy step by step guide to marketing (easy step by step guides)

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Easy Step by StepGuide

To

Marketing

By

Pauline Rowson

Published by Rowmark Publishing Limited65 Rogers MeadHayling IslandHampshirePO11 0PLUK

ISBN 0 9532987 6 0

First printed 1999Re printed and revised 1999

Copyright © Pauline Rowson 1999

The right of Pauline Rowson to be identified as the author of this work has beenasserted by her in accordance with the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced in any materialform (including photocopying or storing it in any medium by electronic meansand whether or not transiently or incidentally to some other use of publication)without the written permission of the copyright owner except in accordance withthe provisions of the Copyright, Designs and Patents Act 1988 or under the termsof a licence issued by the Copyright Licensing Agency Ltd. 90 Tottenham CourtRoad, London, England W1P 9HE. Applications for the copyright owner’s writtenpermission to reproduce any part of this publication should be addressed to thepublisher.

Warning: The doing of an unauthorised act in relation to a copyright work mayresult in both a civil claim for damages and criminal prosecution.

Printed in Great Britain by RPM Reprographics Ltd. Chichester.

Note: The material contained in this book is set out in good faith for generalguidance and no liability can be accepted for loss or expense incurred as a result ofrelying in particular circumstances on statements made in this book.

eBook edition distributed by:Summersdale Publishers Ltd46 West StreetChichesterWest SussexPO19 1RPUKwww.summersdale.com

About the author

Pauline Rowson is a Marketing, Publicity and TrainingConsultant who runs her own business, Pauline RowsonMarketing Services and Training. She is qualified inmarketing and is a member of the Chartered Institute ofMarketing. She regularly advises businesses on all aspectsof their marketing and sales. Her clients are drawn frommany sectors including the professions, engineering,manufacturing, farming, education, service and charitableorganisations.

In addition she runs training courses in marketing, sales,management and personal development.

In her spare time she is a writer of crime and historical fiction.

CONTENTS

Introduction 9

How to use this guide 9

Chapter OneWhat is Successful Marketing? 10

What you will learn from this guide 10So what is marketing? 10How marketing orientated is yourbusiness? 12Action Points 16In summary 17

Chapter TwoKnow Who Your Customers Are 18

Understanding your customers 19Dividing your customers into groups 19Business Customers 21Consumer Markets 23Questions to ask about each group 28Differences between businessand consumer buying 29Your database 30Action Points 33In summary 34

Chapter ThreeKnow What Your Customers Are Buying 36

Benefits and features 36The Product Life Cycle 39Extending the Product Life Cycle 42Developing new products/services 43Action Points 46In summary 47

Chapter FourDeveloping a Competitive Edge 49

Why brand? 49Building a brand 51Choosing a brand name 51Image 53First Impressions Checklist 54Building a competitive edge through price 58Product/service differentiation 59Building and maintaining an excellent reputation 59Action Points 63In summary 64

Chapter FivePricing 66

Setting Prices 66Pricing Strategies 68A Word About The Psychology of Pricing 70When Might You Need to look at Price Changes? 71Action Points 72In summary 73

Chapter SixThe Market Place and Marketing Planning 74

Strengths and Weaknesses 74Opportunities and Threats 75The Marketing Planning Process 77Setting Marketing Objectives 79Marketing Strategies 81Action Points 82In summary 83

Chapter SevenThe Marketing Action Plan 84

Some of the Promotional Tools 86Questions to ask before using Promotional Tools 88Action Points 91In summary 92

Chapter EightTips on Using the Promotional Tools 93

Advertising 93Some Golden Rules 96Promoting a Service 101Direct Marketing 101Secrets of a Good Mailshot 104Newsletters 105Corporate Brochures 106Exhibitions 107Sponsorship 109Building a positive press profile 110In summary 114

Chapter NinePutting it Together 118

Action Points 119The Marketing Plan Summary 125

Other Easy Step by Step Guides in the seriesinclude:

The Easy Step By Step Guide to Telemarketing, ColdCalling & Appointment Making - £9.99

The Easy Step By Step Guide to Selling - £9.99

The Easy Step by Step Guide to Stress & TimeManagement - £9.99

All the above guides are available on order from all goodbooksellers and direct from:

Rowmark Limited65 Rogers MeadHayling IslandHampshirePO11 0PLTelephone: 023 9246 1931Fax: 023 9246 0574E mail: [email protected]

Or via our web site www.rowmark.co.uk

Introduction

All businesses have one thing in common: they needcustomers. Without customers quite simply there is nobusiness. Rather obvious you might be thinking but it’samazing how many people forget this time and time again.

So how do you get customers? How do you get them to buyfrom you - and not just once but again and again? How doyou build a competitive edge for your business? How doyou develop new products and services and stay ahead ofthe competition? All these and many more are the challengesfor a business.

This book will look at these challenges and help you to meetthem. It will help you to understand the basic meaning ofmarketing and take you through a series of steps so that youcan make your marketing work for you. There is no jargonand there are no trendy theories, simply tips on how to doit! I hope you enjoy reading it.

How to use this guide

This guide is written in as clear a style as possible to aid you.I recommend that you read it through from beginning toend and then dip into it to refresh your memory. The boxesin each chapter contain tips to help you and at the end ofeach chapter are some action points for you to relate to yourown business. Also at the end of each chapter is a handysummary of the points covered.

EASY STEP BY STEP GUIDE TO MARKETING

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Chapter one

What is successfulmarketing?

What you will learn from this guide

This guide looks at how you can market your business moreeffectively. It will provide you with a greater understandingof what is meant by marketing and, I hope, will help stripaway the mystique so that you may win more customersand keep those customers coming back for more.

This guide will show you:

how to understand your customers and their needshow to make your organisation more marketingorientatedhow to use some of the promotional tools to targetyour customers and potential customershow to build a competitive edge for your organisationhow to draw up a marketing plan for your businessby following the steps in this guide.

So what is marketing?

Successful marketing is about knowing your customersand communicating with them in the most effective way inorder to win more business from them. It is aboutunderstanding who your customers are and anticipating whatthey want, not just today or tomorrow, but next year, theyear after, and so on.

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Successful marketing is about having a business that isflexible enough to respond quickly to changing demands.And a workforce that is willing to co-operate with yourcustomers, not treat them as if they were public enemynumber one!

Successful marketing is not something that you can pickup today and get results from tomorrow. It is not somethingthat you do ad hoc, or when the mood takes you. It does notmean simply placing an advertisement in a newspaper ormagazine and then waiting for the telephone to ring andorders to flood in, because it just doesn’t happen that way.

But neither is successful marketing any great mystery orrocket science. Much of it is basic common sense with anadded touch of creativity. That creativity is the ability to openyour mind and to put yourself in your customer’s shoes.

Successful marketing means putting the customer at theheart of your business so that everything you do is driven bythat philosophy.

The definition from the Chartered Institute ofMarketing summarises all the above points very well.

‘Marketing is the management process responsiblefor identifying, anticipating and satisfying customer

requirements profitably.’Chartered Institute of Marketing

This may sound like a tall order but if you take a plannedapproach to your marketing it isn’t. I am going to show youhow to do this. I will take you through the stages, step bystep, and show you how to achieve a marketing orientated

WHAT IS SUCCESSFUL MARKETING?


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organisation that will win you more business and keep yourcustomers coming back for more.

So let’s start by seeing just how marketing friendly yourorganisation is. Take a look at the questions listed below andsee how your organisation rates.

How marketing orientated is yourbusiness?

Can you tick yes to all of these questions?

Are your services or products created with thecustomer in mind?

This means producing what your customers want and notwhat you think they want, or what you like producing. Youmay be very good at making widgets. You may want to fillyour whole life with making widgets but it’s not a bit ofgood if no one wants to buy them.

The question is not as simple either as it first appears becausecustomers’ needs and wants change, technology advances,fashions alter. Companies may spend thousands researchingand developing products only to find that they are too late.

Do you track your customers’ attitudes andbehaviour?

This means being constantly in touch with your customers.How often do you talk to them? How often do you surveythem? Do you know what your customers buy, how theybuy and when? Do you know what they want from you?

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Is your organisation organised andco-ordinated in the service of your customers?

This means that, not only do you have to give the customerwhat he or she wants, but that you also have to deliver it inthe way he or she wants. If your customers wish to beinvoiced monthly do you invoice them monthly? If theywish to buy direct through mail order or the Internet doyou provide that service for them?

Are you and your staff customer friendly andresponsive?

If you’ve ever heard any of your staff say the following thenyou shouldn’t have ticked this box.

“ We’ve being doing it this way for the last twentyyears” (which, of course, means they can’t possiblychange).

“ Well you must appreciate that we have ouradministration to think about.”

“ It’s more costly for us to do it that way.”

And so on and so on…excuses, excuses...

Perhaps you are too busy to stop and think about the wayyou are doing things, but if you don’t make time to do this,then you could be missing out on valuable opportunities.Finding new ways of supplying and servicing your customersis what will give you a competitive edge. What was acceptableten, five or even two years ago may not be acceptable todayand will certainly change tomorrow.



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Are your staff motivated and all pulling in thesame direction?

Do you know where your business is heading? And if sodoes your staff know? If they don’t, then how can you expectthem to help you achieve your aims? You need your staffworking for you and not against you.

Does the same vision and identity exist bothinside and outside the organisation?

Do you know what your organisation stands for in the marketplace? How do your customers see it? How would you likeit to be seen? What words describe its personality? Here aresome words that might be used to describe an organisation’spersonality:

professional

friendly

helpful

hi-tech.

Once having defined the personality of your company, askyourself if this personality is communicated both within thecompany and outside it. Is the same message beingcommunicated? If not, then conflict and confusion will ariseand you will be wasting effort, not to mention money, andyou will lose potential business.

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Do you consistently deliver your promises?

Organisations that consistently deliver what they promisewill gain a competitive advantage. But too many companiesdon’t deliver. And they fail to deliver, again and again.Sometimes through over promising and sometimes throughgross inefficiencies. If this is happening in your companythen all the money you spend trying to win new businessmight just as well be poured down the drain. There is nopoint in having worked hard to win customers if you losethem through failing to deliver what they want.

Are you in business to make a profit?

The answer to this is fairly obvious. Even non profit makingorganisations have to balance budgets and make them stretchever further these days. Charities need revenue and to makeevery donation count, and schools need to make theirbudgets stretch to almost impossible lengths. So you needto make every penny spent on your marketing count.

Do you innovate enough?

How often do you look at producing new services orproducts for your customers or at new ways of doing things?Again, the organisation that innovates is the one that is goingto build and maintain a competitive edge.



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So how did you score?

Were you able to tick all the above points? If so, well done.But as you know, and I have already mentioned, it is notenough to be able to tick them once. If you wish to buildand maintain your competitive edge then you have to keepasking these questions and keep providing the right answersto them.

Throughout this book you will, I hope, learn how to makeyour organisation more marketing orientated.

Action Points

1. Take a look at your organisation and the services orproducts it produces - are these what the customer wants?

2. Have you asked your customers what they want? Do youtap into your customers’ comments about your products orservices? Start now - telephone a sample of customers, ordevise a questionnaire to capture their comments after atransaction.

3.Gain feedback from your staff if they regularly interfacewith your customers.

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In summary

Marketing is a long-term strategy not a short termone

Marketing is a management philosophy that shouldrun right through your business

Marketing means getting to know your customers andthinking like them

Marketing is giving your customers what they want,when they want it, how they want it and delivering itin a profitable way

Marketing is anticipating what your customers willwant in the future and ensuring you deliver thisYour services/products must be created with thecustomer in mind

Your organisation must be organised and co-ordinatedin the service of your customers

Your staff must be motivated and all pulling in thesame direction

The same vision and identity must exist both insideand outside the organisation

You must consistently deliver your promises

You need to constantly innovate.



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Chapter two

Know who yourcustomers are

The more you know about your target customers the moresuccessful you will be. This is because you will be able tocommunicate with them more effectively. Let me explain.People need to be shown the benefits of why they shouldbuy from you and those benefits have to be communicatedto them in a language they can relate to. You can’t do thisuntil you know who your customers are and understandthem.

You have to put yourself in your customers’ shoesand think like your customers.

This isn’t always as easy as it sounds. Your customers maybe a different age or gender to you. They may have a verydifferent lifestyle. They may range across many diverseindustries. Whoever they are it is your task to understandthem and communicate with them. Whatever your ownbeliefs and values you have to suspend these and think likeyour target customers.

Of course, you can read all the market research carried outon your customers - and you should. You can apply thecommon sense, scientific approach of marketing - but youwill also need an open mind and imagination to make thefurther leap - the creative element of marketing. So how doyou do this?

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You need to get to know your customers.

Understanding your customers

In order to understand your customers it is easier if you candivide them into identifiable groups with similarcharacteristics. This way you can also target them moreeffectively. By understanding them and targeting them youcan sell more to them and you can stop throwing moneyaway chasing customers who you can’t sell to, who areunprofitable, or who are unlikely to buy from you.

Dividing your customers into groups

If you are already running a business the best place to start isby analysing your customer base to see what type of peopleor businesses currently buy from you. New businessesshould have a clear idea of their target markets from thebeginning.

You can begin by dividing your customers into two distinctgroups:

business customers

consumers.

Some of you may be operating in both markets, some onlyin the one. From these two groups you can then subdivideyour customers further.

For example, if you are in the business-to-business marketi.e. you sell to businesses then you can subdivide yourcustomers by the following categories:

KNOW WHO YOUR CUSTOMERS ARE


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type of business

size of business

geographical location

position of purchaser.

If you are in consumer markets then you can subdivide yourcustomers by the following categories:

by the gender of the customer

by age

by geographical location - you may even know thetype of house they live in

Are they single/married or co-habiting?

What is their lifestyle - what sort of hobbies do theyhave, what sort of magazines and newspapers do theyread?

Have they children and if so what is their age range?

Are they working, unemployed, retired?

What is their economic background and status?

Let’s now take a look at this in more detail.

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Business Customers

1. By Business type or Standard Industry Classification.

What type of business are your customers in? For example,are they in the construction industry, computing, engineeringor retail etc.? You may have customers in a diverse range ofindustries. Give each industry sector a code so that you canpull lists of them off your database. You can then analysethese customer sectors to see what they are buying fromyou, how much and when. You will also be able to targetthem more effectively. You can divide your customers byusing the Government’s Standard Industry Classification.You can obtain a list from your local Chamber of Commerceor in the reference section of a library.

2. By size of the company.

Are your customers from large companies, medium or smallcompanies? Or are they from a range of these? There aremany ways you can define size:

by turnover

by the number of outlets or branches

by the number of employees.

The buying process in a large company will be very differentfrom a small company. It may take you longer to break intolarger companies. You may have to go through several peopleuntil you reach the decision maker, whereas in the smallerbusiness, you may get the Managing Director answering thetelephone to you.



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Different companies will have different needs;they will speak different languages.

You will be targeting different people. You need tounderstand this and tailor your message and your marketingmaterial to suit your audience. This way you will have greatersuccess.

3. By geographical area.

Where are your customers based? Which areas? Are theylocal, national, overseas? How do you reach them? Howdoes this affect your marketing and pricing?

You may have other categories to help you identify who yourcustomers are.

An Example

Take for example a four star hotel situated just off a motorway.It has easy access and lots of parking. It has a gym andswimming pool. It has conference facilities and meetingrooms that it would like to fill, either for one day events, orfor two/three/four day conferences when the bedroomscould also be utilised. Who would it target through itsmarketing? The facilities aren’t likely to be the cheapest.

The hotel is therefore better off targeting the largercompanies; those who perhaps have a sales force or a largenumber of employees, those who hold product launches.Or it could target the Professional sector which marketsthrough seminars, or training organisations that would holdone or two day courses. It could also target nationalorganisations like Institutes and Associations who hold

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annual conferences. It can therefore begin to define boththe sectors it would like to target, and the size of theorganisation most likely to buy its services.

The hotel is least likely to spend its time and money targetingthe small business, the sole proprietor type business andthose with few staff.

It can also define the geographical area it is targeting: localbusinesses over a certain size with a certain number ofemployees. And it can target further afield, the UK in totalperhaps.

So you can see from this that we can define our targetaudience. Having defined them we can find out how to reachthem, through direct marketing to them, or advertising inthe magazines they are most likely to read. We can directour money and efforts into communicating the benefits ofour hotel and conference centre to them and so get them touse us. We are not wasting time and money chasing businessthat is least likely to use us.

Now let’s take a closer look at consumer markets.

Consumer Markets

The area of consumer marketing is very sophisticated. Somecompanies spend vast amounts of money in understandingjust exactly who their customers are.

Information on the breakdown of the population is providedthrough the census. This information is taken by companiesand agencies and cross referenced with other informationgathered through surveys, research etc. to provide



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organisations with a breakdown of consumers; their buyinghabits, where they live, their occupation, leisure interests,age, social status and so on. The loyalty cards issued by manylarge stores are just another means of capturing informationabout the buying habits and breakdown of customers.

The socio-economic model of dividing the population intodistinct groups has been with us a long time, since 1911 infact, when Britain’s working structure looked very different.Then it was possible to label people as manual/non manual,or skilled/unskilled. Since then, manufacturing industry hasdeclined and the service sector has grown. Today you canno longer measure just skill, which is why a new classificationis to be introduced in 2001 when the government conductsthe next nation-wide census.

I have provided a breakdown of this new classification. It isbased on occupation and has seven major classes:

1. Higher managerial and professional occupations1.1 Employers and managers in larger organisations1.2 Higher professionals

2. Lower managerial and professional occupations3. Intermediate occupations4. Small employers and own account workers5. Lower supervisory, craft and related occupations6. Semi routine occupations7. Routine occupations.

An additional category to cover those who have never hadpaid employment and the long-term unemployed will beadded. You can also divide your customers into the followingcategories and add these factors to the above model.

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2. By type of house.

Are your target customers more likely to live in a large,detached modern house or a terraced house in an inner city?Do they live in council houses or in cottages in the country?And what sort of area of the country do they live in? Is ittown, suburb, countryside or a mixture of these?

3. By lifestyle.

What is their lifestyle? What hobbies do they enjoy? Do theygo out to eat and if so where? Where do they shop and whatsort of goods do they buy? Do they take holidays abroad andif so what kind of holiday? What newspapers and magazinesdo they read?

4. By lifecycle.

By this I mean are they married or single? Do they livetogether? Do they have children and if so what are the agesof the children. This will influence what is bought. Are theyretired and if so how affluent?

You can also divide your customers by:

age

gender

ethnic origin.

Therefore, by looking at the above categories you may be ina better position to understand what markets you are in andwho you should be targeting. Obviously whom you are



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targeting will dictate to a certain degree, the price,distribution, availability of the product or service, its nameand branding. More about this in later chapters.

Once you have defined whom you are targeting - i.e. who ismost likely to buy your products/servicesyou can obtainlists of names and addresses from the companies who rentor sell this information.

Our Four Star Hotel

If we return to our four star hotel then, using the aboveconsumer categories, we can define who is most likely tostay in the hotel. We can say what their background is likelyto be, their ages, where they live and what type of housethey live in. We can define their most likely lifestyle and,having done this, we can then place our advertising in themagazines they are most likely to read. Or we could rent orbuy a list of names and target them through direct marketing.

So again you can see that we want to direct our money andenergy into targeting people who are most likely to buy fromus.

But what if I can sell to everybody?

Some business owners tell me they can sell to ‘everybody.’And, of course they may be able to sell to ‘everybody.’ Ifsomeone turns up on our hotel doorstep for example wantingto stay overnight, or to hire a room for a conference, we’renot going to send them away but that is very different fromtargeting them.

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You can sell your products or services to whoever is preparedto pay for them. But when it comes to marketing, how doyou market your products or services to ‘everybody.’ Howdo you reach ’everybody?’ Also if you target ‘everybody’ whatmessage do you use? It would have to appeal to a very widerange of people with diverse interests and backgrounds.Sometimes your marketing message will hit the right notewith the right people, the rest of the time it will be wastedand so will your money.

You need to make your marketing work, so don’t waste timeand money chasing customers who are unlikely to buy fromyou, or who are unprofitable. Know what markets you arein and understand those markets thoroughly. It will paydividends for you.

By analysing your customer groups clearly you canbegin to answer the questions:

Where are my customers?How do I reach them?

How do I communicate with them?

When you look at your target groups of customers you willprobably find that some groups are easier to reach thanothers. Some will also be more profitable, or better payers.It is these you want to concentrate on.

Once having decided whom to target, you can then decidehow to target them. How do you reach them? Where canyou advertise for example? What other promotional toolswould they respond to? In addition, what sort of messagewould appeal to them and what kind of image? More aboutthis in later chapters but if you don’t undertake this first



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basic exercise then you could be advertising, or sending directmail to the wrong people - a waste of time and money.

In my experience, many businesses skip this first stage andend up throwing money down the drain because they simplydo not understand what market they are in. They try to beall things to all people which simply doesn’t work.

Questions to ask abouteach group of customers

Once you have carried out the above exercise you will needto ask the following questions:

How large is that group of customers?

Where are they and how easy is it for me to reach them?

How many competitors are there in the market placein relation to that group?

How can what I am offering be significantly differentto my competitors?

How easy is it to enter or win new business from thisgroup?

How costly is it to enter or win business from thisgroup of customers?

The answers to the above questions will help you decidewhere you should be spending both your money and timeon marketing. You need to reach the people you think aremost likely to buy from you. You may also need to adopt

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different marketing tactics for different groups of customers.Above all don’t forget your existing customers. Could yoube selling more to them? Your existing customers are theeasiest group of people to sell to, yet many businessesoverlook them. You should be keeping your name in frontof them on a regular basis, perhaps through a newsletter.You should be informing them of new products/services.You should be telephoning them regularly. You should beup selling or cross selling other services or products to them.

The difference between consumerbuying and business buying

Let me finally touch upon the differences between consumerbuying and business buying. The obvious one is thatconsumers buy for their own personal use whilst businessesbuy for their organisation’s use.

Generally speaking in a business there are more peopleinvolved in the buying decision. You could find that theperson who uses the equipment, as well as the person whoplaces the order, and the person who signs the cheque couldall influence the buying decision.

Organisations can impose buying policies and the purchasingdecision usually generates lots of paperwork. Decisions willalso be made on what that organisation needs as opposed towhat it wants.

The need to buy in an organisation can take into accountthe objectives of the company, the policies and procedures.The profit motive may be a strong factor in reaching apurchasing decision. However, not all decisions to buy arebased on these objective reasons but often subjective reasons



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come into play. The decision to purchase may also be madebased on the relationship you have with the decision makerand whether or not he or she likes you!

In some organisations there are professional buyers. Theseare expert in analysing the needs of the company and whetheror not the product or service bought match these needs.

Reciprocal buying arrangements may also mean that firmsbuy from firms that buy from them and supplier loyalty maybe involved.

A greater flexibility is often needed in financial arrangements.This could involve options to lease, rent, or give an extensionof credit, or provide buy back arrangements.

Many industrial products are expensive to develop andmanufacture, as well as being expensive to purchase, so itcould mean that the buying cycle is longer. Industrial buyersof capital equipment may take a few years to make a decisionto buy from you and this can be the same in professionalmarkets where the decision to change accountants or lawyerscould take many years.

Many organisations will seek tenders by buyers for goodsand services and contracts may be drawn up for long-termsupply arrangements rather than for one off purchases.

Your Database

It is essential to capture information about your customerson a database. A database is a vital marketing andmanagement information tool for driving your businessforward. You should record existing customers and theirtransactions.

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You should also use the database to review past customers.If someone has bought once and then stopped buying fromyou, find out why and get them back. If you have donesomething to upset them then you want to know about it.You can only put things right if you listen to them and accepttheir comments. And then, of course, act on them.

You should also have a prospect database made up ofindividuals or businesses that could, with regular targeting,become customers.

Database Advantages

A database will help you:

Track developments in your customer base

Identify prospects and their potential to buy

Target key customers and prospects with the rightmessages

Monitor the success or otherwise of your marketingactivity

Identify areas of improvements i.e. customer care:what problems and complaints are you regularlyreceiving?

Monitor sales and decline of sales of products/services.

If you don’t have a database, or use it properly, allyour forecasts will be based on highly suspect,

historical data.



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Your database should contain:

Details about the decision making process of yourcustomers i.e. who buys and their position. This isparticularly relevant in business markets.

What the customer has bought in the last couple ofyears.

Where the customer has come from. You may bereceiving enquiries from your Web Site. If you arethen make sure your Web Site has a database functionand can transfer names and addresses captured on linethat can then be mail merged with a word document.The customer, or prospect, can then be communicatedwith ease and on a regular basis. On line buying sitesshould have this function as a matter of course.

You may also like to ensure that your Web Site holdsa customer survey asking the browser where he orshe heard of you and what prompted them to look atyour site, or purchase from it. This information canthen be analysed and any pattern of buying identified.It will also help you to monitor the effectiveness ofyour marketing activity.

What the value and volume of sales per customer is.

If a representative visits customers, or a telemarketingperson calls them, make sure the date and result ofthe call, or the visit, is logged and the date of the nextcall is flagged up.

A brief history of the customer.

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A breakdown of your customers and prospects byindustry type, geographical area, number of employeesetc. or consumer type and background information.

A list of prospects and details on them.

The mailing history.

The marketing history.

Organisations need to ask what is being bought - bywhom, when, how often and why are they buying?

Action Points

1. Look at your own customer base and analyse who is buyingfrom you.

What sort of consumers or businesses?

Where do they come from?

How much do they spend?

Which are the most profitable sectors?

Identify which sectors or groups of customers youare going to target?

2. Start capturing information about your customers on adatabase and analyse it on a regular basis.



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In summary

You will need to identify who your customers are.Break your customers down into easily identifiablegroups with similar characteristics.

Business customers can be broken down into:industry typesizegeographical areas.

Consumers can be broken down into:socio-economic groupingstype of housegeographical arealifestylelifecycleagegenderethnic origin.

Then look at what each group of customers buy, howmuch and when.

Look at the groups of customers in relation to yourmarket place - how large is the group?

What geographical area does it cover? Is this easilyaccessible to you?

How profitable is the group of customers?

How easy is it to enter or win new business from thisgroup of customers?

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Don’t forget your existing customers. Could you beselling more to them? Keep in regular touch withthem and try to up sell and cross sell other productsand services to them.

Don’t forget dormant or past customers. Find outwhy they stopped buying from you and try and winthem back.

There is a difference between organisational buyingand consumer buying. Organisations can take longerto reach a purchasing decision and more people canbe involved in the decision to purchase.

Make sure you have a database to capture informationon existing customers, past customers and prospects.



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Chapter three

Know what yourcustomers are buying

Having identified who your customers are you now need toidentify what they are buying. Knowing this will help youto send the right message to them.

When people buy something they ask, ‘ Why should I? What’sin it for me?’ They are seeking certain benefits from buying aparticular service or product. It is these benefits that you haveto communicate strongly in your marketing literature in orderto persuade your customers to buy from you.

Benefits and Features

People buy the benefits of a productor service not the features.

In my experience many businesses fail to realize this whichmeans that their literature is often written in the languageof features and not benefits. Features alone do not persuadepeople to part with their money, or their time. Features alonewill not increase sales. What will increase sales is if you candemonstrate to your potential customers the benefits of thosefeatures you are offering.

So how do you do this? You need to look at the products orservices you are offering and identify for each of these thefeatures and benefits. If you can’t see a benefit how do youexpect your potential customers to see it!

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Here are some examples.

1. A FeatureWe have a wide range of products/services.

Which means

The BenefitWe have something to suit all tastes. There is no need toshop around. We can save you time and money.

2. A FeatureWe are centrally located.

Which means

The BenefitWe are easy to get to thus saving you time and hassle.

3. A FeatureWe are a well established company.

Which means

The BenefitWe can give you the reassurance that we know what we’redoing. We’re not here today, gone tomorrow. We have theexperience and expertise to give you the best advice.

4. A FeatureYou can buy direct and order through our 7 day a weekhotline.

Which means

KNOW WHAT YOUR CUSTOMERS ARE BUYING


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The BenefitIt’s cheaper, quicker and more convenient for you.

5. A FeatureWe can deliver to your door.

Which means

The BenefitThere is no need to struggle into town and park. It’s quickerand easier to buy from us and will save you time.

If we look back to our previous example of the hotel thenone of the features I mentioned is the swimming pool. Thebenefit of providing this feature to delegates attending anovernight conference, or guests staying in the hotel, is that,after a hard days work or shopping, they can relax andunwind with a swim in the pool. You can tailor your message,i.e. the benefits, to suit the target audience.

Do you get the idea?

The two magic words that turn a feature into abenefit are which means.

Perhaps you don’t know what benefits your customers arebuying or why they buy from you. If you don’t, then youwill need to ask them. It’s a good idea to ask them anywaybecause you can take their comments and put them in yourliterature. The benefits they gained from buying the product/service will appeal to other customers.

In addition, by asking your customers and prospectivecustomers what benefits they want, you could get ideas on

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how to improve your services or products. You may findyou need to make changes.

When you are reviewing what your customersare buying and why they buy, you need to ask if

you are providing the right products and servicesin the best way.

Developing products and services that your customers wantOrganisations constantly need to be looking at providingbetter, newer, different and more profitable products, orexamining better ways of supplying customers.

Nothing stays the same. Not in life, and not in the businessworld. The demand for your products or services will changeover a period of time and the challenge is to make sure thatyou monitor that change and keep adapting or developingnew products and services to meet your customers’ changingneeds. To understand this I need to explore the concept ofsomething called the Product Life Cycle.

The Product Life Cycle means that products gothrough certain phases: introduction, growth,

maturity and decline.

The Product Life Cycle states that products or services are:

introduced into the market

they grow

they mature

they decline.



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Most companies have a range of products or services eachof which may be in a different stage of its life cycle. However,not all products follow this life cycle. Indeed, some productshave been around for a very long time and have not goneinto decline. Other products have flopped at the introductionstage.

For example, products that have not declined are: Mars Bars,Heinz Baked Beans and Levi Jeans to name but a few,although Levi Jeans are currently looking at ways to keeptheir product alive in a changing and fickle fashion market.

Mars have extended their product life cycle by reintroducingthe Mars Bar in a number of different forms. There has beenking size, party pack size, miniature size, egg shaped, filledwith ice cream, dark chocolate.

Levi Jeans were originally worn by cowboys in the mid westof America. They were restyled, relaunched and extendedinto a completely new and very different market i.e. the youthmarket. Again the challenge is on for them to relaunch andextend yet again as the youth market fashion trends change.

Conversely, some products never reach the growth phasebut fail on introduction. Clive Sinclair’s C5 for example.

And then, of course, there is the stage before introduction -product development. Many products will never see theintroduction phase. Whilst others will go on to becomemature products.

The key to success and continuing success lies in a companyhaving a number of products or services at the different stagesof its life cycle. Depending on what stage your product or

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service is at will also determine the marketing strategy,investment costs and profitability.

Let’s take a look at this in more detail.

Product Development

There is no return on your investment

You have a heavy investment both in terms of timeand money.

Introduction (the start of the lifecycle)

Your sales are low

Your cash flow is negative

Your profits are negligible

You are searching out new customers

Your Investment costs are high/marketing costs high.

Growth

Your sales are growing fast

Your profits are at peak levels

Your customers are growing

Your marketing costs are moderate to high.



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Maturity

Your sales are starting to slow before going into decline

Your profits are declining

Your marketing costs could be high as you struggle tokeep your products in front of your customers to boostsales.

Decline

Your sales are declining

Your profits are declining

Your cash flow levels are low

Customers are fewer.

When a product or service is in the growth phase its saleswill be high and investment costs lower. Profit should thenbe reinvested into new product or service development sothat when a product reaches maturity and declines there areother products and services coming along behind it tostimulate sales.

Extending the life cycleof your products or services

You can extend the product lifecycle and halt decline byadapting your product/service.

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This means taking an existing product/service and adaptingit for an existing market, or for selling it into a completelynew market.

Adapting can include:

modifying or improving the product itself

improving or changing the quality

changing the packaging

changing the name

relaunching it

targeting a completely new market or newgeographical area, country even

offering a sales incentive to buy.

If sales are declining you may decide to withdraw the productor service. You can decide whether or not to increase theprice dramatically before ditching it, or you could sell it on.You may adopt certain sales promotion tactics, like offering10% off, or 10% extra, but, of course, this will have an impacton your profitability.

Developing new products/services

Product differentiation has become a key competitivestrategy and new product development an essential activity.You will need to be on the constant look out for new productsor services. So where can you get ideas from? Ideas cancome from:



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Talking and listening to your staff

Your staff may have more contact with the customer thanyou. You need to encourage your staff to ask the customerquestions about the level of satisfaction experienced. Staffshould then feedback those comments to you. Of course, itgoes without saying that you should take those commentson board and action them if possible.

Your staff may have a wealth of ideas but they need to beencouraged to air them. You need to create a climate whereideas can be raised and welcomed, not shot down in flames.And new staff in particular should be encouraged to comeforward with ideas and ways of improving things. They comeinto the business with a fresh pair of eyes and often askquestions as to why you are doing something in the wayyou are. When no one listens to them they stop askingquestions and just carry on the same as everyone else - whata waste.

Talking and listening to your customers

You can carry out formal research amongst your customers,asking them for their views and opinions. Or the researchcan be informal. Simply by asking customers what they thinkabout your products or services can be enough. Don’t forgetto listen to their comments and act on them. Customerevaluation forms can also capture information and ideas.

From your competitors

Firstly, know who your competitors are in each of yourmarkets and product or service areas. You may have manycompetitors in different sectors and price ranges. Collect

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information on them. What are their strengths andweaknesses and how does this compare with your own? Canyou take some of their ideas and refine them, do them betteror different.

From published research

Take time to read trade or professional papers and magazines.There is a wealth of published information available coveringa wide range of subjects. This can include information from:

Chambers of Commerce

Business Links

Government Statistical Services

Organisations, trade associations etc..

Much of the information is free so take advantage of it. Itcould give you new and very profitable ideas.

From the media

Both national and local media can provide you withinformation on trends. Articles can help stimulate ideas.

Network

Get out and about and talk to people. Attend exhibitionsand seminars. Keep your eyes and ears open. But mostimportantly keep your mind open.



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Action Points

1. Draw up a list of features and benefits for your business.Answer the customer’s question,‘ Why should I buy fromyou rather than your competitor?’

2. Now look at what you are providing. Draw up a list offeatures and benefits for each product/ service you provide.

3. If you don’t know what your customers are buying orwhy they buy, then find some customers and ask them.

4. Take a look at your own products/services. What is thevolume of sales generated for each product/service?

5. Compare this with previous years’ performance then plotyour range of products or services on a life cycle. Whichproducts would you say are in the maturity or growth phaseof the Product Life Cycle? Which in decline?

6. What new products or services are being developed orintroduced?

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In summary

When people buy they ask, ‘Why should I?’ ‘What’sin it for me?’ The product or service benefits mustcome out strongly on your marketing literature.

To turn a feature into a benefit add the words whichmeans between them.

The need to constantly develop new products andservices to suit your existing customers, or for newcustomers, is great.

You need to be looking at providing better, newer,different and more profitable products or ways ofsupplying your customers. To understand this look atwhere your products are on the Product Life Cycle.

The Product Life Cycle explores the concept thatproducts go through certain phases: introduction,growth, maturity and decline.

Most companies have a range of products each ofwhich may be in a different stage of its life cycle.

Depending on what stage your product or service isin will also determine the marketing strategy,investment costs and profitability.

When a product or service is in the growth phase itssales will be high and investment costs lower. Profitshould then be reinvested into new product or servicedevelopment.



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You can extend the lifecycle and halt decline byadapting the product. This means taking an existingproduct or service and adapting it for an existingmarket, or for a completely new market.

If sales are declining you may decide to withdraw theproduct.

Ideas for new products or services can come fromtalking and listening to your staff, talking and listeningto your customers. From your competitors, publishedresearch and the media.

Ask yourself if you are providing the right productsand services to your customers in the best way.

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Chapter four

Developing aCompetitive Edge

One of the biggest challenges for businesses today is how tobuild and maintain a competitive edge. There are a numberof ways of doing this, all of which are very easy to say (orwrite) but none of which are simple to carry out. In thischapter we look at some of the ways you may be able tobuild a competitive edge for your business. This could bethrough:

branding

image

price

product or service differentiation

building and maintaining an excellent reputation forproviding a good service or product.

Or you could build a competitive edge for your products orservices through a combination of the above. Let’s examinethese in greater detail.

Why Brand?

What matters is not merely what people know about your


– 50 –

product but how they feel about it and how it relates to theirown personality and life style. People tend to buy what theyare familiar with. They like to know what the product orservice stands for and whether or not it is the right one forthem. Branding helps them to make this choice.

Branding is used to define identityand helps people relate to the product.

Branding is used very strongly in the fast moving consumergoods market where customer loyalty needs to be constantlyfought for. But it can also be used on other productsincluding industrial products. In the service sector and inbusiness to business markets, image, as an aspect of branding,is very important and we will look at image in more detaillater.

Branding will give a product identity and make it more easilyrecognisable. If people know what a brand stands for, andwhere it fits with their own needs, then it is easier for themto buy it.

People will ask:

Does this brand fit my lifestyle?

Does it express my identity?

Is it value for money?

How available is it?

What do I think about it - do I like or dislike it?

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Building a Brand

Various factors go into making up a brand. These include:

the product itself

the packaging

the advertising

the brand name

the price

how and where it is distributed

its availability

its logo, colours, style, any strap lines

the consistency of communicating all the above whichgo into forming a corporate image or identity.

Branding also goes beyond this. Things like quality, service,reliability, innovation and integrity all come into play.Branding is the result of a successful marketing and businessstrategy. It will reflect how you train your staff in thecompany’s values and how you manage your relationshipswith your customers.

Choosing a brand name

This can be a very tricky area and marketing history is litteredwith expensive errors. Essentially the brand name should:

DEVELOPING A COMPETITIVE EDGE


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never contradict the essential product qualities

not have unfortunate connotations

be easy to say, pronounce, catchy

fit onto the packaging.

Take a look at some well-known brands and companies - ifI ask you to sum up what you think about them, you aresumming up the brand or company personality.

Guinness

Ford

Mercedes

Waitrose

Tesco

Microsoft

Kellogg’s Cornflakes

Virgin.

What words do you associate with these brands or companies?

Get someone else in your company to do the same exerciseand see if you both come up with the same, or similar brandimages. If you do then these companies are successfullycommunicating their brand image and values.

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Image

Building and maintaining a favourable image of yourorganisation in the minds and eyes of your customers is vital.The image of the company is an essential ingredient in thechoice of services and often in the choice of products. Butthis image has to be managed. It doesn’t just happen.

So what elements go into communicating an imageand how can you manage this?

All visitors to your company carry away with them animpression. You need to make sure it is the right impression.

Whether it is on the telephone or face-to-face firstimpressions count. Remember the saying - You never get asecond chance to make a first impression.

People will judge not only you by first impressions but alsoyour organisation. If the hotel used in our example earlierhas dirty curtains and peeling paintwork, or the receptionistis unhelpful, then the first impressions of it won’t be verygood at all. I certainly wouldn’t stay there and you may noteither. Not only that but I would also tell others not to gothere.

If a restaurant’s toilets are dirty - then what are the kitchenslike? I have walked out of a restaurant after seeing the stateof the toilets. And I’m not the only one to do so.

How does your company treat visitors - any visitors and notjust potential customers but the person who comes to cleanthe windows or service the photocopier, the delivery driversand suppliers? Remember they all carry away with them an



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impression of your company. They could all be potentialcustomers, or they could have relatives and friends whocould be potential customers.

For a while, some years ago, I spent time cold calling oncompanies - an experience I will never forget. I can stillremember, and name, the companies who treated me well,and the ones who didn’t! They certainly formed a lastingimpression in my mind.

Here is a checklist to see if you are getting first impressionsright.

First Impressions Checklist

Tick if you’ve got the following right:

Is the entrance to your organisation clean and tidy?

Is the name of the organisation prominentlydisplayed?

Have the logo and corporate colours been used onthe signs?

Are the doors clearly marked: ‘Reception.’

Are the company brochures on display? Are they upto date and fresh looking?

Is the reception area clean, tidy and uncluttered?

Is there somewhere for people to sit and wait incomfort?

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Is the receptionist dressed smartly or in a uniformprovided?

Does the receptionist smile on greeting the visitor?

Does the receptionist get the visitor’s name and useit?

Does the receptionist invite the visitor to take a seat?

Does the receptionist offer the visitor a tea or coffee?

If there is a delay does the receptionist keep the visitorinformed?

Does the receptionist give good eye contact with thevisitor?

When a staff member meets the visitor:

Is the visitor greeted with a smile and the use of theirname?

Does the staff member shake hands with the visitor?

Does the staff member open friendly conversation?

When the interview has finished:

Does the staff member show the visitor out?

Does the staff member shake hands, smile and thankthem?



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How is the telephone answered?

Is the telephone answered within three rings atreception?

If not what is the procedure if the telephone ringsmore than this?

Is the telephone answered within three rings at theextension?

Is the telephone extension answered with the staffmember’s name?

Is there a message taking policy if the person is notavailable?

Remember: first impressions count.

Take time to get all these vital elements right and do watchthat reception area. When I train sales people I always tellthem to get to the company they are visiting at least tenminutes before their appointment and sit in reception. Thereyou can learn an awful lot about the company you are visiting,not only from the literature and what is displayed on thewalls, but from the gossip. Unfortunately, or ratherfortunately, for sales representatives, receptions are treatedas social zones and everyone goes to them to gossip.

Once, whilst I was sitting in the reception area of a very largeInternational company waiting to see the Commercial Director,two women did the most wonderful (or rather I should sayawful) character assassination on the man I had yet to meet. Ilearnt a great deal about him, not all of it true, I’m sure!

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There are other elements that go into communicating animage and here I have listed some of them.

Your media coverageIs it favourable or unfavourable, or non existent?

SponsorshipIf you undertake sponsorship then how is yourcompany name seen in the light of the sponsorship?Is it the right image?

Brochures/leaflets/newslettersHow is your name and company image portrayed onyou marketing material?

AdvertisingWhat image are you portraying through youradvertising? Is it strong enough? Does it say what yourcompany stands for? Do your staff advertisementscommunicate to potential recruits the image of yourorganisation?

StationeryFrom your letterheads to your fax cover sheets whatare you communicating to your customers? Is yourletterhead too fussy or out of date? Are you using upold supplies of stationery with old logos and designswhilst at the same time using new stationery with newdesigns? If you are then your target markets arereceiving mixed messages.

Your staffWhat is the general attitude and appearance of yourstaff? Do they know what image your organisation



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wishes to portray to its markets? If they don’t howcan they communicate this? Do they wear a uniformand if so what does this say about the organisation?

Your vehiclesThe appearance of your vans, cars, and lorries areimportant in communicating an image. If a van, orcar, displaying your company name is badly driventhen what does this say about your company? If thevan or lorry is dirty and falling to pieces, what imageis your organisation projecting? A pretty bad one, don’tyou think!

SignageIf your company signage, both external and internal,is tatty, dirty or badly displayed, again it doesn’t domuch for image does it?

The Petty Matters Matter!

Take time to get all the things that go into makingan image right and keep checking they are right.

Building a competitiveedge through price

Another and perhaps obvious way of building a competitiveedge is through price. But it may not necessarily be thebest way. You can be cheaper than the competition and sogain market share, but market share is not everything ifsacrificed on the altar of profitability. Remember once yourprices are low it is difficult to get them up again. In addition,you need to consider what image you wish to portray toyour customers - cheap and cheerful, or value for money? It

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all depends on what market you are in and how yourcustomers perceive you, the product or service, and its price.

Conversely you could charge a premium price and build acompetitive edge this way. Perhaps you have an excellentimage and reputation and this is taken into account whencustomers decide to buy from you. Price isn’t everythingand can often be of secondary consideration when qualityand reputation are strong. I will look at pricing in more detailin the next chapter.

Product/service differentiation

You may have a product or a service that is very different toyour competitors and therefore be able to gain a competitiveedge. They say that imitation is the highest form of flatteryand you can bet your bottom dollar that if you’re doingsomething unique, or have a unique product, it won’t remainunique for long. If it’s good, imitators will come into yourmarket, therefore, making product or service differentiationvery hard to maintain.

Innovation is important. You should be constantly lookingfor new and better ways to deliver a service, or be searchingfor a better, more improved product.

Building and maintainingan excellent reputation

All the money you spend on marketing will be wasted ifyou don’t get things right inside your organisation. If youhave worked hard to win the customer and then things gowrong as soon as the customer buys from you, you might aswell throw your money away.



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Do good work and more work comes from it.

Having an excellent reputation in your field of expertise, orfor your products, is the best way of building a competitiveedge. But building a good reputation can take years ofpainstaking, hard work and only months, maybe even weeks,to destroy if you are not careful.

Building and maintaining a good reputation has to be workedat, constantly. No person, and no one organisation, can affordto be complacent. If you or your organisation becomecomplacent then it is almost guaranteed that you will losebusiness and one of your most precious business assets; yourgood name.

Your staff are vital when it comes to maintaining a goodreputation. In a service organisation at least 90% of the staffwill come into direct contact with the customer. They mayeven deliver the service and as people buy people so yourcustomers will be making buying decisions based on whetheror not they like the people in your company. If they don’tlike them, they won’t buy from them. In serviceorganisations, marketing strategies and personnel strategiescannot be separated from each other. Therefore getting theright people and retaining them is absolutely vital.

And if you are marketing a product not a service aren’t staffjust as important? Of course fewer of the staff will comeinto direct contact with the customer but they all have a partto play in getting that product out of the factory gate ontime and to the right standard. They rely on each other todo jobs efficiently and effectively.

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If you have staff who couldn’t care less, or who simply comein to work, do their bit, and then disappear as quickly aspossible without being motivated by you, then their attitudewill undoubtedly affect your competitive edge.

Do you remember that marketing orientation checklist inchapter one? Well, you want your staff working with younot against you and to do this they have to share the samevision as you. Your staff need to know what your organisationstands for, so define it and communicate it, consistently, notonly through the written word but also through leading byexample.

Define excellence and make it your objective.

Ensure that excellence is led from the TOP. That meansthe business owner, director and manager. If it isn’t it willfail.

Set standards of how you expect your staff to behave. Andmake sure you adhere to those standards yourself.

Ensure that if you have a dress and behaviour code that it isfair and consistent. You can’t have one standard of behaviourand dress for your staff and a different standard for yourselfor the management. When you draw up a behaviour or dresscode make sure you involve your staff in this. These areusually highly contentious areas and can cause a great dealof friction. If staff are involved then they are more committedto making it work. Make sure you communicate thesestandards. Ensure that all your staff are clear on what isexpected of them.



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You will also need to examine training needs and issues likestaff incentives. Give your staff a real sense of personalresponsibility and try to develop an environment in whichorders can be passed and carried out effectively.

Also give staff a sense of belonging - make them feelinformed and involved. Ensure that they have a share in thesuccess of the organisation. Happy staff make happycustomers and therefore happy shareholders!

In order to ensure you have a well-motivated workforce youmust be concerned with their personal wants, needs, anddesires. There are no bad companies only bad managers. Soyou must make time to get staff relations right andcontinually work at it. It will pay dividends for the businessif you have a happy, well-motivated workforce and it willcontribute directly to the bottom line profit. Remember, Ialso said that you can get ideas for improving services orproducts from staff. So get their feedback and do this on acontinuous basis.

Give your staff the training they need, not only for them tobe able to do their jobs, but also in people handling skills.And plan for continuing training.

Make sure you measure and monitor performance. This canbe done through regular and valued performance reviewsor appraisals. Ensure that the staff members giving theappraisals are trained in how to do this and that the systemis confidential and fair.

And don’t forget to reward your staff. This does notnecessarily mean a pay rise (although I am sure they wouldalways welcome one!) but often a ‘thank you’ or ‘well done’

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is enough. Too many of us are too ready to criticize andforget to give praise when it is deserved. People are motivatedthrough praise, not punishment. Reward people throughgiving them extra responsibility or a different project.Training and development can also be motivating andrewarding.

Above all recruit the right people with the right attitude.

Action Points

1. Look at your own products. Have you developed a strongbrand for them? Write down what that brand image is andthen get your staff and customers to tell you what they thinkit is. Do you come up with the same points?

2. Conduct the first impressions checklists and identify areasthat need to be put right. Make a list of them and say howyou are going to put them right and when.

3. If you employ staff then carry out a staff audit. How happyand motivated are your staff? Examine their training needsand look at how you can improve the motivation of yourstaff.

Put in place a communications strategy to keep your staffinformed and involved.



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In summary

There are a number of ways you can build acompetitive edge but the key to doing so andmaintaining a competitive edge is consistency.

You can build a competitive edge through; branding,image, price, product or service differentiation andby having a reputation for excellence.

Branding is used to define identity and helps peoplerelate to the product.

People will ask themselves if the brand fits with theirlifestyle and identity, whether or not it is value formoney.

Various factors go into making up a brand image.These include the product itself, the packaging, theadvertising, the brand name, the price, how and whereit is distributed and its availability.

Choosing a brand name can be tricky. The brand nameshould never contradict the essential product qualities.It should not have unfortunate connotations. It shouldbe easy to say, pronounce, be catchy and should fitonto the packaging.

Having a clearly defined image for your business,products or services will greatly enhance yourorganisation’s competitiveness and increase sales.

First impressions can be critical. Make sure they arethe right impressions.

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When building a competitive edge your staff are vital.Remember people buy people. Ensure that everyoneis working for the organisation, not against it.

Building a good reputation for excellence in your fieldwill ensure you get recommendations and repeatbusiness.

Communication plays a key role in developing yourstaff to provide the desired corporate image.

Involve your staff, get their feedback and do this on acontinuous basis.

Develop a personality for your organisation and leadit from the TOP.

Set standards for how you expect your staff to behave.

Give your staff the right training, not only for theirjobs, but also in people skills.

Measure and monitor performance of your staff.

Reward your staff - remember to say ‘well done’ or‘thank you.’



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Chapter five

PricingThe prices for your goods or services will be set dependingon a number of factors. For example:

your market

your product or service

your competitors

where your product/service is on the product lifecycle.

Pricing strategies will change. New entrants may come intoyour market, the attitudes of your customers can alter,technological breakthroughs will affect your product andtherefore the cost of producing it and its positioning in themarket place. You will need to constantly monitor your pricesand adapt them accordingly.

So how do you set your prices? What pricing strategies arebest for you?

Setting Prices

When looking at how you set your prices you need toconsider the following:

Your business objectives - how much profit do youwish to make and over what period?

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Your costs for producing the product or deliveringthe service.

The competition. How many competitors do youhave? What are they providing and what is their pricingstrategy?

What is the demand for your products/services?

Do you have a distribution channel mark up?

What discounts, if any, are you offering?

When setting your prices you may have a variety ofobjectives. Here are some of them:

To earn a target on investment.

To maximise short or long term profit.

To keep the business at a planned level of production,or to keep staff employed.

To achieve a certain amount of growth in a requiredperiod.

You may need to set a price that avoids governmentinvestigation and control.

You set your price to enhance the image of the firmand its products or services.

You set a price that will stabilise the market.

PRICING


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You set a price that will discourage entrants into themarket.

To meet or follow the competition.

To stimulate cash recovery.

To be regarded as fair by customers.

To increase or maintain market share.

Obviously your business objectives can change and so toocan the market. Your prices will change to reflect this.

There are a number of pricing strategies you can adopt. Manyorganisations use a variety of the ones I have listed.

Pricing Strategies

Price Skimming

Your product or service may be so different that it representsa drastic departure from the accepted ways of filling a demandor performing a service.

For example, when the Dyson Bagless Cleaner came ontothe market it was the first of its kind. It could therefore bepriced higher than other vacuum cleaners. It could skim orcream off the market before its price became more sensitiveas other copycat products entered the market. The higherprices can also help to recoup some of the outlay on researchand development.

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Market Penetration

This is where low prices are used as an entering wedge toget into mass markets early. Direct Line Insurance used thispricing strategy when entering the market. They were uniquein that they were the first to cut out the middle man (thebroker) and sold insurance direct to the end user (thecustomer). They did not charge a premium price but wentin cheaper than other competitors in order to gain marketshare. Strong potential competition is likely soon after theintroduction of a new product or service when no ‘elite’market, or no brand loyalty, exists and where people willrespond to price.

Competitive Pricing

You will set your prices to meet that of the competition.

Differential Pricing

This is where you can charge different prices for the sameproduct or service. This can be because of the differentlocation of buyers, different types of customers or for largepurchasers.

Diversionary Pricing

The actual price of the product or service is hidden in extras,i.e. installation, fitting etc..

Dumping Price

This is used to clean out excess obsolete stock.

PRICING


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A word about the Psychology of Pricing

Price can be taken as an indication of quality. If the price isperceived as being too high or too low then you may have toexplain it or it will put people off.

I remember once, when I worked for Makro, thewholesalers, a range of office equipment was reduced toridiculously low prices. There was absolutely nothing wrongwith the equipment; it wasn’t even obsolete but a genuinereduction. I watched as customers, initially attracted by thelow prices, picked up the items and then put them downagain. The goods were priced too cheaply. Customersthought there was something wrong with the products sothey didn’t buy.

People will also make a comparison between the product interms of its ‘perceived value,’ i.e. is it seen as value for money.

Pricing can be linked to the packaging. Expensive packagingcan associate the product in the eyes of the customers withexpensive goods. Perfume is a good example of this.

Image can play another part in the pricing game. A piece ofpottery or porcelain in a tatty junk shop priced low may notbe bought because it is perceived to be rubbish. Clean it upand put the same piece in an expensive antique shop andthe price can be trebled (unless of course you haveknowledge of antiques and know its true value.) Image canbe used to fool people or it can put people off. Is your priceright for your company image and for the products it sellsor the services it delivers?

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When might you need tolook at price changes?

You will need to consider price changes for any of thefollowing:

To help boost an ailing product.

In chapter three we looked at the Product Life Cycle. Whena product starts to decline you may decide to repackage itand relaunch it. If you do you may be able to raise the price.Alternatively, you may decide to lower the price of an ailingproduct to clear it out altogether. You may also be changingyour prices by running ‘special offers.’

Loss leaders.

This is a term more often associated with supermarkets.Sugar and bread are often used as loss leaders. They willdraw the customer into the shop and once there the customerwill make other purchases. You may decide to sell yourproduct or service at a low price and not actually make anyprofit on it because you know it will lead to further businessor more sales from that customer. Many solicitors use theirWill writing service as a loss leader. Some even write Willsfree of charge on the basis that once they write your Willyou will return to buy your conveyancing, and other legalservices. If the solicitor is good at cross selling this is often avery successful strategy.

To counter the competition.

You may decide to lower your prices to counteract the activity

PRICING


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of the competition. You need to be careful here as anylowering of prices could lead to a downward spiral in themarketplace. Once down it is extremely difficult to raiseyour prices again.

You may decide to lower prices to win more work in adeclining or stagnant market to help keep your workforceemployed. The problems of lowering your prices could notonly lead to a price cutting war, but it could also affect otherproducts/ services in the range. It could change thecustomer’s perceptions towards you and lead to an increasedexpense in promotion and an image of financial instability.For example, those shops which permanently have a sale!

Action Points

1. Examine your own pricing strategies, are they the correctones?

2. What are your objectives and how will this affect yourpricing strategy?

3. What is the image of your products/services and how areyou perceived in the market place?

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In summary

When you set your prices they won’t stay the sameforever. New entrants may come into your market,the attitudes of your customers can change,technological breakthroughs will affect your productand the cost of producing it and its positioning in themarket place.

Price can be taken as an indication of quality.

People will also make a comparison between theproduct and its ‘perceived value.’

Pricing can also be linked to the packaging.

You will consider price changes when launching a newproduct, to help boost an ailing product and as a lossleader to counter competition.

PRICING


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Chapter six

The market place andmarketing planning

Part of your marketing involves you taking a look at yourbusiness and analysing its strengths and weaknesses. It alsoinvolves you looking at the market place in which yourbusiness operates and examining the opportunities andthreats.

This is called carrying out a SWOT analysis. The SWOTanalysis should be conducted at least twice yearly and yourmarketing plan should address the weaknesses in yourbusiness and build on the strengths you have identified. Itshould also state how you are going to capitalize on theopportunities and possibly what action you are going to taketo overcome any threats to the business.

The strengths and weaknesses

What strengths does your organisation have that you canbuild on? What are the weaknesses that you need to correct?You may already have identified some strengths andweaknesses throughout the previous chapters.

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For example:

Strengths

Good client baseGood product rangeClear vision of managementWell-motivated staff.

Weaknesses

Inadequate databaseWeak on investing in new productsWeb Site out of date or no Web SiteReception area image poorRecruitment problems.

The weaknesses will affect the performance of yourorganisation. Either eliminate them or turn them intostrengths. Taking a realistic stock of your strengths andweaknesses is a must.

The opportunities and threats

What is happening in your market place now and possiblyin the future that could affect your business? What actiondo you need to take as a result of this? The opportunitiesand threats are concerned with the external factors whichaffect your company and over which you have little or nocontrol.

The same item could appear under both columns. Forexample, legislation introduced by the government couldpose both a threat and an opportunity to your organisation.

THE MARKET PLACE AND MARKETING PLANNING


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The competition could also be both a threat and anopportunity - you may be able to take market share fromyour competitors and equally they could take market sharefrom you.

Other things that need to be considered under these headingsare:

Consumer attitudes, changing lifestyles, habits,values and trends

How will these affect your business? Identifying gaps in themarket for new products and services could spring frombeing attuned to changing consumer patterns. Our lifestyletoday is much faster than that of previous generations.Customers want their products delivered quicker, hence thegrowth of same day delivery services. Those organisationsthat spot the opportunities presented by changing consumerattitudes will continue to gain a competitive advantage andwin market share.

Technological developments

How will technology impact on your business? One of themost radical changes in recent years has been theintroduction of the personal computer, the microchip andof course the Internet. Digital television is set to open upnew markets and change buying habits. E commerce is areality. Can your organisation embrace it and exploit it as anopportunity to reach new markets or are your competitorsleaving you behind? How will technology change the wayyour business operates? How will it change the way yourcustomers choose a supplier or buy goods?

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Legislation - both UK and EU legislation

What new legislation is on the cards that could affect theoperation and profitability of your business? This can involvenot only UK legislation but also European legislation.Perhaps new legislation will open up a new market for you?Perhaps it will seriously affect the viability of your business.

Economic

Recession, recovery, interest rate increases or decreases. Howmuch money do people or businesses have to spend orinvest? How will this affect your company’s performance?

You will also need to monitor the changes taking placearound you with regard to suppliers. Changes in their marketmay well affect you. New channels of distribution areopening up with the World Wide Web, others may be closingdown. How are you responding to these changes?

You need to be aware of what is happening in your ownmarket and the wider – macro - environment. Looking aheadand being prepared is half the battle. Adapt your marketingaccordingly to meet these opportunities and threats.

The Marketing Planning Process

What I have done in the previous chapters is take you throughwhat is called the marketing planning process. I have posedthe questions you need to answer in order to market yourbusiness more effectively. Let’s just sum up the marketingplanning process so far.



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Step 1. Identify your target markets

Divide your existing and potential customers into easilyidentifiable groups. Understand who your customers are,where they are, what they buy, why they buy, how muchand when. What value do they put on your products orservices? What markets are you really in?

Step 2. Identify your services/products

What is the range of products or services on offer? Is thisthe right mix for your target customers? Where are yourproducts or services in relation to the Product Life Cycle?Are they in the introduction, growth, maturity or declinephase? What are the features and benefits of the products/services you offer?

Step 3. Identify your competitors

Where are you in the market place in relation to yourcompetitors? What are your competitors’ strengths andweaknesses? What is your brand share, market share? Whatare your competitors’ prices, sales strategies? What newproducts or services are they developing?

Step 4. Identify your competitive edge

Carry out an Image audit. Just what is the image of yourbusiness? Carry out a staff skills and performance audit - doyou have the right staff with the right level of skills? Carryout a customer satisfaction audit - are you delivering whatyour customers want? Identify how you are going to buildyour competitive edge. Is this through:

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People

Service or product excellence

Reputation

Image

Price

Or all the above.

Step 5. Carry out a SWOT Analysis

Identify the strengths and weaknesses within yourorganisation. Say what you are going to do to build on thestrengths and eliminate the weaknesses. Identify the externalopportunities and threats.

Now we need to look at setting the Marketing Objectives.

Setting Marketing Objectives

Most Marketing Plans run for a year at a time but it is agood idea to set, or at least have some idea of, your broadobjectives in the longer term; say three to five years. A wordof caution though, it is becoming increasingly difficult toplan very far ahead as the pace of change today is so fast andthe introduction of new technology is daily re writing thetext books on business operation and business development.Having said that, however, you still need to set objectives atleast on an annual basis.

When setting your objectives it is not enough to say that



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you want to be the best company in town - how are yougoing to measure that? How do you know when you are thebest?

Your objectives therefore have to be specific and measurable.In short they need to be S.M.A.R.T.

S.M.A.R.T. stands for

SpecificMeasurableAchievable

RealisticTimed

Here are some examples of objectives that meet the abovecriteria.

To increase market share of x product/service from10% to 20% of the current market by January 2001.

To increase sales of x product/service from £1.8m to£2m by January 2001.

To maintain % profitability levels on x product rangeover the year.

To investigate at least two new markets and to identifyone key market to penetrate in 2001.

Whatever your objectives ensure they are realistic andachievable. I often find that when I go into companies theowners or directors have set themselves too many objectives

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that they can’t possibly hope to achieve. This is demotivating.So don’t be too ambitious.

Marketing Strategies

So how are you going to achieve your marketing objectives?How are you going to increase sales, increase your customerbase, build profitability etc.?There are four basic marketing strategies to help you. Theseare:

1. Market PenetrationThis involves keeping your existing customers and findingnew ones.

2. Product or Service DevelopmentThis involves improving your existing products or servicesi.e. improving the quality, adapting the style, offeringsomething new etc. for your existing customers.

3. Market ExtensionThis involves finding new markets for your existing productsor services i.e. going further afield geographically orappealing to a new group or type of customers.

4. DiversificationThis involves increasing your sales by developing newproducts for new markets.

This final strategy carries the highest cost and the highestrisk. You are entering a market you know nothing about,with a product or service you have no experience of. Usually,businesses adopt a combination of the first three strategiesto achieve their objectives.



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Following this you need to develop a marketing action planfor each strategy to help you achieve your objectives. Youmay have a marketing action plan for each target group ofcustomers and/or for each product or service supplied. Thenext chapter looks at the promotional tools you can use inyour marketing action plan to help you achieve yourobjectives.

Action Points

1. Carry out a strengths and weaknesses analysis. These areconcerned with the internal aspects of your business. Statethe action you will take to correct the weaknesses. Yourmarketing plan should also state how you are going to buildon your strengths.

2. Carry out an opportunities and threats analysis. Rememberthese are concerned with factors outside your control in theexternal market. Identify any opportunities. Your marketingplan should state how you are going to exploit theseopportunities. Identify the threats and say what you can doto minimise these?

3. Set your objectives for the next year at least or review theones you have already set. Are these S.M.A.R.T.?

4. Identify the marketing strategies you are going to use tohelp you achieve your objectives.

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In summary

A SWOT analysis should be conducted twice yearly.This looks at the internal strengths and weaknessesof your business and the external opportunities andthreats.

Marketing objectives should be S.M.A.R.T. Thisstands for:

SpecificMeasurableAchievableRealisticTimed.

Don’t set too many objectives. If you can’t fulfill themyou will become demotivated.

There are four basic marketing strategies to help youachieve your objectives. These are:

Market PenetrationProduct/Service DevelopmentMarket ExtensionDiversification.

Usually businesses adopt a combination of the first three strategies to achieve their objectives.

You need to develop a marketing action plan to helpyou achieve your objectives.



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Chapter seven

The MarketingAction Plan

So, having answered all the questions in the precedingchapters you are now ready to look at how you are going totarget your customers and potential customers.

You will have identified whom you are targeting, with whatproducts or services and why your customers buy theseproducts and services.

You will also have identified what it is they are buying: thebenefits of those products and services. You will have anunderstanding of your target markets so that you are able totalk the language of customers in those markets.

You will have a clear brand identity, or identities, for yourproducts and services and a clear image for your companyand your products/services.

You will also have reviewed your prices and set these.

You will know what your strengths and weaknesses are andwill be building on these strengths and taking action toeliminate, or minimise, the weaknesses. You will be planninghow to capitalise on the opportunities you have identifiedand you will be aware of the threats to your business.

You will have set your marketing objectives and identifiedwhich marketing strategies are the most appropriate for you.

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There may be other issues you need to address - internalissues - like staffing. You may need to refine your database,or start working on developing new products or services.You may be surveying your customers to find out what theirlevel of satisfaction is with your products or services, orlooking at developing a Web Site or E commerce.

Having gained a clear direction of where you are headingand whom you are targeting, you need to identify the rightpromotional tools to reach those target customers.

People can’t buy from you unlessthey know you exist.

So you need to communicate with them. You need to tellthem you’re there!

There are a number of ways you can do this and a numberof promotional tools you can use. You have to decide whattools, or what mix of tools, are the best. This will dependon:

what you are hoping to achieve i.e. your objectives

what budget you have set

whether or not it is the appropriate method for thatparticular group of customers.

This chapter lists some of the promotional tools. The nextchapter gives you some tips on how to use them.

THE MARKETING ACTION PLAN


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Some of the promotional tools

Advertisingtelevisionradionewspapersmagazinesdirectorieswall planners, diaries etc.poster advertising e.g. hoardings, railway platforms,bus shelters, buses etc.

Signagebusiness premisescars, vans etc.

Promotional itemsnotepadspenscarrier bagst-shirts etc.

Direct Marketingmail order cataloguesoff-the-page advertisingdirect response advertisingmailshot lettersmailshot leafletsdoor drop leafletsinserts into magazinestelemarketingthe Internet.

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Editorialpress releases and articles

Taking a stand at exhibitions and trade fairs

Personal Sellinghaving a sales representative on the road and callingon prospects.

Seminars/Demonstrations/Open Daysinviting your prospects and customers to a seminar,demonstration and open day.

Corporate Hospitalityinviting prospects and customers to a corporatehospitality event. Your satisfied customers should helpyou sell to your prospective customers.

Sponsorshipinitiating your own sponsorship deal, or going in onthe back of existing ones, like theatre sponsorship.You can tie this element in with editorial coverageand corporate hospitality.

Sales Promotion Techniquesmerchandising - making sure your product isdisplayed to the maximum effect.giving special offers e.g. two for the price of one,discounts,10% extra etc.joint promotions - tying up with someone else.

Personal Recommendations



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Much of your business should be generated through existingcustomers who come back to you and buy more from you,or who recommend you to others. Getting it right insidethe organisation - your internal marketing - is extremelyimportant. Chapter four looked at this in detail.

You may be able to think of other promotional tools you canuse to target your customers.

Questions to ask before using any of thepromotional tools

Before you decide to use any of the promotional tools youshould stop and ask the following questions:

1. What is my objective?

Be clear about what you are trying to achieve from the outset.For example, you may be advertising to stimulate sales andprompt enquiries. Alternatively, you may be advertising withthe purpose of raising name awareness only amongst yourtarget audience. This is a very different objective that willnot directly stimulate enquiries in the short term, but couldbenefit you long term, especially if carried out consistentlyand in conjunction with other promotional tools.

You may be holding a seminar to increase your organisation’sprofile in its target market. Enquiries may not come in atthe seminar itself but later, when you follow up the contactsmade with a direct mail letter, telemarketing call, brochureand even possibly a special offer.

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You may be carrying out a direct mail campaign with theobjective of increasing your database. Once you have nameson your database you can then begin to communicate withthese prospects on a regular basis, perhaps throughtelemarketing them, inviting them to a seminar or exhibition,sending them special promotions and of course keeping intouch with them on a regular basis through your newsletter.

You may be attending an exhibition, not with the primarypurpose of getting orders or leads, but because if you’re notthere your competitors and the visitors may think you’vegone out of business or that you’re in financial difficulties!

These are just some examples. The main message is to knowwhat it is you are hoping to achieve then you will be able tomeasure the success of it. And, of course, you must alwaystrack results.

2. Can my message be creatively different and is it theright message?

How are you going to communicate your message throughthis promotional tool? Don’t forget you must communicatethe benefits of what you are offering, in the language thatthe target market understands and can relate to.

You must also look at the image you are portraying, and brandvalues if appropriate. How are these being communicatedwith regard to the promotional tool you are using?

You will need to think about your target customers and howthey will react to the message. How do you wish them toreact? Define this and check back that you are achieving it.



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3. Will using these promotional tools reach my targetaudience?

Have you chosen the right promotional tool to reach theright target audience? Remember back to chapter two whenwe looked at what markets we are in. Always ask yourselfwhether or not this promotional activity will reach yourtarget market.

4. How am I going to follow this through?

The key to successful marketing is consistency - consistentlyputting out the right message to the right target audience.People buy what they are familiar with, so you need to keepyour company name, and/or your products or services, infront of your target customers on a regular basis. It is notenough to advertise once and then say, ‘well that didn’t workonto the next thing!’ You will need to build awareness foryour products or services over a period of time, through acampaign, this could be by advertising, using directmarketing or through the press.

Why businesses fail in their marketing is mainly down tothree things:

they don’t understand what markets they are really inand therefore try and be everything to all people;

they don’t understand why their customers buy fromthem and therefore don’t communicate the rightmessages;

they flit from promotional tool to promotional toolnot giving any of them time enough to work.

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Make sure this doesn’t happen to you. Draw up a programmeof marketing activity. It doesn’t have to be grandiose orextravagant, simply producing a half yearly newsletter and apress release once a month may be enough. In fact, it maybe all you can afford and need. Sending a mailshot quarterlyand following up with telemarketing and/or a sales visit maybe the right approach for you. A small advertisement in theright magazine once a month may work, and you maycombine this with a mailshot to certain target customers.Or attendance at one or two key exhibitions, with leads beingconscientiously followed up with mailshots andtelemarketing could get you results.

So identify who you are targeting, with whatmessage and how over the next year.

Write it down. Say when you are going to do it and stick toit, even if you are frantically busy because it is when you arebusy you should be marketing. Another classic mistake is totake your foot off the gas when the going is good. Whensales dry up further down the line you are then coming fromtoo far behind for your marketing to take effect immediately.

Action Points

1. Look at the markets you are targeting. What promotionalmethods are you going to use to reach them andcommunicate with them? Are they the right promotionaltools?2. What is your objective in that target market - will thatpromotional tool achieve that objective?3. Write down who you are going to target and say how. Putbeside it who will be taking the action and how much it isgoing to cost you.



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In summary

There are a number of promotional tools you can use.You have to decide which tools, or which mix of tools,are the most appropriate.

You will need to consider what you are hoping toachieve, what your budget is and whether or not it isthe most appropriate method for that particular groupof customers.

Before you decide to use any promotional tools youshould ask - can demand for this product/service bestimulated by using this promotional tool?

You can’t measure the success of the promotional toolunless you know what it is you wish to achieve in thefirst instance.

Always track results.

You must communicate the benefits of what you areoffering, in the language that the target marketunderstands and can relate to.

You must also communicate your image and /or thebrand values if appropriate.

Be consistent in your approach. People buy what theyare familiar with, so you will need to make them awareof your company and its products or services over aperiod of time.

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Chapter eight

Tips on using thePromotional Tools

In this chapter I will examine some of the more popularpromotional tools and provide you with some golden rulesand tips that will help you to use them more effectively.

Advertising

Advertising can often be the most costly and the leasteffective of the promotional tools, particularly when it comesto the smaller business working on a low budget. Of courseit can bring you results but be clear about why you areadvertising and what you hope to achieve by advertising.You will also need to make sure you are advertising in theright medium to attract your target audience.

Advertising must create a sense of familiarity as I have alreadymentioned in the previous chapter. People buy what theyknow and recognise. Advertisements over a period of timetherefore build familiarity, raise awareness and credibility.One off advertisements rarely achieve anything. So whenyou are considering advertising you almost certainly needto look at a campaign. This builds your company name andawareness in the mind of your target audience. Youradvertisements should also create an image that is compatiblewith the product/service and your organisation.


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Advertising Objectives

When you consider running an advertising campaign youneed to think of your objective i.e. what it is you are tryingto achieve. Here are some objectives:

to build demand for your product or service onlaunch,

to give the customer details and instructions on howto use a product,

to build brand recognition for your product,

to create a certain image for the brand, or for thecompany,

to give information about a price promotion and sostimulate demand,

to build names and addresses on the database,

to educate people - e.g. drink driving campaigns, nosmoking campaigns,

to back up sales drives,

to influence consumers to buy.

Before you advertise you will also need to know the answersto those questions I posed in chapters two and three, namely:

who buys your product or service?

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why do they buy it?

what is it used for?

what is the extent of advertising needed to reach thattarget group of customers?

how much do you need to do to get the messageacross?

You also need to answer the following questions:

What media are my target customers exposed to?

What do I know about the media?

If it is a printed publication then obtain a copy of it. Seewho else is advertising in it and try telephoning a couple ofthe advertisers to ask about their response.

What is the content of the editorial and would it appeal toyour target customers? Ask yourself if they would buy andread this magazine or newspaper. Ask the publication whattheir circulation and readership figures are, and what profileof customers the publication is aimed at. If you areconsidering radio or television then ask who listens to theradio station, or who watches that programme?

How often is the magazine/newspaper/directory etc.published? What are the rates, the copy deadlines and whatspecial deals will they do for you?

Ensure that the media details match with your targetaudience. Then, if having satisfied all the above, you decide

TIPS ON USING THE PROMOTIONAL TOOLS


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to advertise, how can you make your advertising moreeffective?

In order to work adverts must be:

SeenRead

RememberedBelieved

Acted upon.

Firstly then, you have to get the advertisement seen or heardi.e. it must appear in the correct media, or on the correctradio or television station, at the right bus stops and railwayplatforms etc..

Next the advertisement has to be read. What makes you lookat an advertisement? How many times have you looked upat a hoarding whilst sitting at the traffic lights and have readwhat is on the board in front of you? Have you rememberedit? Have you gone to turn the page of a magazine ornewspaper and found yourself instead reading andresponding to an advertisement? It worked. Ask yourselfwhat made it work?

Some golden rules forusing promotional tools

The following is the golden rule for many of the promotionaltools, whether it is designing an advertisement, writing amailshot letter or leaflet, or writing for an insert or brochure.

You need to grab their ATTENTION.

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You only have a couple of seconds before someone turnsthe page and misses your advertisement. You have a coupleof seconds before they put your mailshot letter in the wastepaper bin, or lift the insert from the magazine and throw itaway. So you need to make sure that you grab their attention.

To do this you need to be imaginative. Try using a strongheadline or a bold question that captures or plays on yourkey benefit. Remember back to our features and benefitsexercise in chapter three? It is the benefits that persuadepeople to buy, not the features.

On television, obviously you can use a number of techniquesto capture the imagination.

Television and Cinema are moving pictures with sound andvision both of which you can exploit, but that doesn’tnecessarily mean people will keep watching, they may zapchannels, or pop out to make a drink, or buy an ice cream,therefore missing your expensive advertisement.

Again, you need to think of your target audience and capturetheir imagination perhaps through humour, a story line, acartoon or nostalgia.

Sound will make people notice your advertisement on theradio. You can use sound effects, a good voice artist or musicto get the attention.

In the printed media, which most of us will be concernedwith, you can use colour to make your advertisement standout in a mainly black and white publication. Or you coulduse a black or coloured border. Borders are very effective.Illustrations or photographs also work well. Or you could



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use a combination of the above. But don’t fall into the trapof trying to cram too much text into too small a space.

Use white space to help youradvertisement stand out.

Keep it simple. Too much text and your advertisement willbe lost in all the other text on the page.

Look through the advertisements in magazines andnewspapers to see which ones stand out. Ask yourself whyand then adapt the technique to suit your own advertisements.

In a mailshot letter, leaflet or flyer, essentially you arewriting advertising copy. So again you need to put your keybenefit first or pose a question to get the reader’s attention.

Don’t begin a mailshot letter with waffle, or with thestandard, ‘I am writing to introduce my company to you.’It’s obvious you are writing and besides I didn’t invite youto introduce your company to me did I? And if I read anotherletter starting with, ‘In today’s competitive climate,’ I thinkI will scream. I know it’s competitive so please don’t tell mewhat I already know!

If you don’t make your letter easy to read then why shouldyour reader bother with it? You haven’t got time to wadethrough lots of text searching for the benefits so don’t insultyour reader by thinking that they are not as busy as you are.

Once the mailshot letter, leaflet, flyer or advertisement hascaught the recipient’s attention what you hope is that thereader, watcher or listener will stay reading, listening orwatching! To do this you need to:

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Stimulate INTEREST.

Here, we return once again, to our features and benefitsexercise. What are the other benefits you are offering? Makethese benefits strong in your advertising copy, mailshot letterand leaflet, to add conviction.

When writing the copy always remember your targetaudience, what language do they speak? What will theyrespond to?

In a mailshot letter use short words, short sentences andshort paragraphs. Use YOU and I instead of WE. Rememberyou are trying to create the impression of writing to thempersonally so make it user friendly. Use frequent subheadings or bullet points to break up copy. Be clear,straightforward, uncluttered and avoid jargon. Be as naturalas you can, as if you are having a conversation with theperson.

Always consider the reader’s needs, in your advertisement,leaflet, flyer or letter. Make sure you interest him/her bygiving benefits.

Remember people always ask ‘what’s in it for me!’Address this question in your advertisements,

mailshots. Tell them what’s in it for them.

Develop interest with the best benefit and win them overwith second and further benefits. Follow your copy throughfrom the heading. You must get the reader saying, ‘Yes, Imust have some of that!’ And there must be something inthe letter, leaflet or advertisement for the reader whereverhe/she looks. Make it easy for the reader or listener to



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understand what the offer is. They shouldn’t have to spendhours fathoming it out, and of course they won’t.Having gained interest you then need to:

Inspire DESIRE.

Strengthen your benefits. You can use questions to hold theinterest and build desire.

Be enthusiastic. Be friendly. Be helpful. Again revisit yourfeatures and benefits. Add in the features that would appealto the target customers emphasising the benefits, for examplefree car parking, a free quotation, money back guarantee, anaccessible location, friendly helpful expert staff, long andconvenient opening hours, or an easy way of ordering.

Make your target customers really want what you areoffering.

Finally prompt ACTION.

Tell the customer what he or she should do now i.e. call us.Make the telephone number bold or add in a coupon or afax back. Let them tick boxes; people find it easier andquicker.

Give an incentive for them to take action, use a free trial,free consultation, free brochure and free gift possibly.

So remember A.I.D.A.

Attention – Interest – Desire - Action

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Some extra wordson promoting a service

Promoting a service is not easy because a service is intangible- you cannot demonstrate it, touch it, taste it etc. So how doyou communicate your message? And how do youdifferentiate what you are offering to that of yourcompetitors?

The rule of A.I.D.A. also applies here but, in addition, youneed to capture the personality of the service organisation -what it stands for. You need to try and build a strong imagethrough your advertising, and an image that people willremember.

In service advertising you need to get the reader to identifywith the company. This can be done through consistentlypromoting the right image. We looked at image in chapterfour.

Direct Marketing

If used correctly Direct Marketing can be a very effectiveway of marketing and winning new business.

Direct Marketing provides the opportunity for your potentialcustomers to buy direct from you without using a third partyi.e. you can reach your customers direct.

Direct mail in particular can be phased and targeted and theresponse monitored. It is an excellent marketing tool forboth large and small businesses alike.



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What areas does Direct Marketing cover?

‘Off the Page’

These advertisements appear in many colour supplementsand magazines. Customers can buy the product ‘off the page’paying by cheque or credit card, either by using the couponresponse or by telephoning to place their order.

Direct Response Advertising

This is where your products can be sold direct throughadvertising. Charities cost effectively raise thousands ofpounds through their direct response advertising campaignstargeted at key times throughout the year, like Christmas.People will telephone the number given and give money viatheir credit card. Many other products and services, likeInsurance for example, are sold through advertising directon the television and radio.

Mail Order Catalogues

There has been a rapid rise in the number of excellentproducts being sold through mail order catalogues. Boden,Racing Green, The Art Room, The Cotswold Company andmany more specialist and general catalogues exist today.Viking Direct sells stationery direct through catalogues andmany other consumer goods and business-to-businessproducts are sold in this way. Can you put your productsinto a catalogue and sell through mail order?

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The Internet

Like mail order there has been a considerable increase inthe number of people using the Internet to buy products.Many companies promote their services on the Internet.Predictions are that the Internet is set to change the way webuy forever. It will get quicker to use and therefore it will beeasier to shop in this way. Again, can you use the Internet tosell your products and/or to promote your services?

Telemarketing

My book, ‘The Easy Step by Step Guide to Telemarketing,Cold Calling and Appointment Making’ explains this areain much greater detail. Telemarketing can apply to bothinbound and outbound calls and again, with the advent oftechnology, we have seen a rapid growth in this area. Thetelephone as a marketing tool can be used successfully bylarge and small businesses alike.

It can be used:

to help you build and maintain relationships with yourexisting customers, to get them to buy more from you

to answer queries and deal with customer complaints

to carry out market research

to sell to new customers.



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Direct Mailings

This includes:

mailshot letters

leaflets

door drops

inserts.

Well targeted and well designed mailshots, in particular, canbe an extremely successful form of marketing. They arecontrollable and the results can be measured. We have alreadylooked at the golden rules for writing mailshot letters andleaflets, but there are some additional rules you’d do well toremember to ensure your mailings don’t become junk mail.

Secrets of a Good Mailshot

The Mailing List

This must be as accurate as possible and up to date. Themailshot must be targeted to the right person and must besent to a named individual.

The product/service and the offer

There must be something in the mailshot for the reader. Astrong offer and clear benefits.

The sender must have an affinity with thereceiver

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You must communicate the right message. Again you needto look back to the work we’ve already done in chapters twoand three. In order to be successful you must talk thelanguage of your target customers.

A response mechanism

You must make it easy for the reader to respond. Give thema coupon to complete and post, or a fax back. Or make yourtelephone number bold to encourage them to pick up thephone to you. Freepost and a Free Phone number can helpto lift response.

Newsletters can be effective mailshots

Newsletters are an effective marketing tool in that they cankeep both your existing customers and target customersinformed of new products and services. They also help tokeep your company name in front of your customers.

Newsletters can help to build rapport with your existingcustomers and gain loyalty from them. By keeping yourorganisation’s name in front of your prospects it will help tostimulate sales and enquiries.

But in order to work Newsletters must be producedregularly. This can be quarterly, three times a year, or simplytwice yearly. Produced regularly your customers andprospects will come to expect them and they will also cometo rely on receiving them. Newsletters should also containvaluable information for the customer and should certainlynot just be company sales puff.



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Corporate Brochures

Do you need a corporate brochure? What are you going todo with it when you get it? I have been to many organisationswhere the corporate brochure has cost them the earth andyet it sits collecting dust in the bottom of a cabinet. I haveeven had people say to me that their brochure is tooexpensive for them to send out - what was the point ofproducing it then!!

You must ask what is the purpose of your brochure. Is it tobe mailed to people on request? Is it to be displayed inreception? To be taken to an exhibition or for use by thesales force? Or are you going to use it for all of these thingsand more.

Who is it aimed at? What target audience are you trying tocommunicate with? If you have a wide cross section of targetaudiences do you need several brochures to communicatewith them?

What special, unique selling points or benefits are you goingto emphasise in your brochure? What image are you tryingto portray? What is the personality of your company andhow can this be communicated in your brochure? Does thebrochure need photographs or illustrations? Should it befull colour, one colour or two? What size should it be? Allthese questions need to be answered and to do that you needto know how you are going to use the brochure and whoyou are targeting.

In addition, never have too many people involved in thedesign of a corporate brochure or it will end up looking asthough a committee has designed it. The essential message

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and image will have been diluted, or even lost completely.Remember it is not what you would like in a brochure butwhat your target audience would like.

And, of course, look at your budget. Corporate brochurescan be expensive. Make sure you spend your money wiselyon a brochure that serves its purpose and that it will workfor you and reach the right target audience.

Exhibitions

Before agreeing to undertake an exhibition you should askyourself why you are exhibiting. What do you hope to achievefrom it? Here are some objectives for exhibiting:

To meet existing customers and improve yourrelationship with them.

To meet potential customers, identify newopportunities and prepare the ground for future sales.

To promote your organisation and its image.

To inform customers and potential customers of newservices/products or changes.

To obtain sales leads.

To prove you are still in business!

Questions to ask for Exhibiting?

Before exhibiting ask yourself the following:



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Is it the right Exhibition for my business?

Are your customers and potential customers going to bethere? Who will attend the Exhibition?

How are the organisers promoting theExhibition?

Are they going to do enough to attract visitors?

What will it cost? You need to consider thefollowing:

Cost of the spaceCost of hiring or producing a standCost of materialCost of your timeCost of any lost business whilst you are away.

Design of your stand

Who is responsible for this? What image do you wish tocreate? The stand should be welcoming and accessible.Corner stands are ideal as access is available from threedirections. Alternatively a stand sited at the bottom of astairwell can prove to be a good location.

Make sure you have the right literature and don’t display ittoo neatly otherwise visitors will be afraid of disturbing yourwork of art.

It is also a good idea to have something moving on display, apiece of equipment, a computer programme, or a video. Ifplayed loudly it attracts visitors to your stand. But make sure

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it doesn’t run on endlessly. Stop and start it at loud placesespecially when visitors to your stand are flagging.

Make sure you have enough staff manning your stand. Youshould always have at least two people on the stand for themajority of time. Exhibition work is very tiring and peopledo need to take a break, have a coffee and go to the toilet. Inaddition, if you have at least two people, you can have a pre-arranged signal between you to get rid of the time wasters.

After the Exhibition

Many organisations fail to track the results of an exhibition.This seems crazy when you think of the amount of moneythey cost. You must evaluate the success or otherwise ofundertaking that exhibition and you must be prepared totrack contacts for some time afterwards; months, years even.Look at:

How many leads did you get?How many orders did you get?Ask if the exhibition was worth attending and wouldyou do it again.How much did it cost you - was this recovered withorders received?

Ruthlessly follow up all contacts made, and keep in touchwith them. Use mailshots and newsletters to do so. Invitethem to an open day or seminar.

SponsorshipIf you decide to undertake sponsorship, or initiate oneyourself, you must ask yourself why you are doing it andwhat you hope to achieve through it.



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Some objectives for Sponsorship could be:

To enhance the image or reputation of your company.

To build links in the community.

To reach a new target audience.

To promote your company name and image.

Define who you are aiming at - what sort of people? Howwill they see your company name and in what connectionwill it be associated? Then ask if this is the right image?

How much will you have to pay for the sponsorship andwhat does this cover? What can you get out of it, for example,extra press coverage, entertaining at an event? Also considerthese extra costs.

Are there any other sponsors and if so who are they? Arethey your competitors? Also ask how long the sponsorshiplasts for.

Building a Positive Press Profile

Editorial coverage is an extremely effective way of raisingyour company profile. Editorial carries at least two and halftimes the weight of advertising. People believe what theyread in the newspapers. If the newspaper says you’re an‘expert’ then you become an ‘expert.’

What can press coverage do for your organisation?

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Press coverage can:

raise your organisation’s visibility and credibility withcustomers and prospective customers

stimulate sales of goods and services

set you apart from the competition

help to motivate employees - everyone likes to workfor a successful organisation

help to attract good quality recruits

help to reinforce the other messages you are sendingout.

The secret to successful press coverage is in pitchingthe right story to the right media at the right time

to convey the right message to your target audience.

So what are your possible news stories?

There are many ‘news’ stories to tell within an organisation.Here are examples of just some of them:

winning new ordersretirementsnew appointmentspromotionsnew products or servicescelebrations, like anniversarieswinning awardssuccess of trainees



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involvement in local charitiesgood financial results.

Scan the local and national newspapers to see what makesthe news. Look at your trade or professional magazines tosee who is hitting the headlines and with what kind of story.Develop a journalistic eye and look for the angle - theelement that makes the story appealing and different. Thelist of possible stories is endless. Set yourself targets forwriting and distributing at least one press release a month.

Press release layout guide

Use ‘News Release’ headed paper preferably withyour company name on.

Type neatly with double spacing and wide marginsand use only one side of paper.

Don’t underline anything and if you go onto a secondpage put ‘more....’ at the bottom of the first page.

Don’t split a sentence between one page and the next.Staple the pages together and get someone to proofread it for mistakes before it goes out.

Send it first class post, or e mail it if the newspaper ormagazine accepts e mail. Wherever possible addressto the journalist by name.

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Writing Your News Release

The news release is written in a certain style. Here are sometips to help you write yours.

The headline must encapsulate the story - what therelease is about. Don’t try to be a tabloid headlinewriter because the editor or sub editor will use his orher own headline anyway. Your headline is used purelyto capture the journalist’s attention.

The first paragraph is the key to the release. It mustcontain the whole story, the angle and yourorganisation’s name, where you are based and whatyou do.

The second paragraph goes on to give the detailsalready summarised in paragraph one. The facts andfigures if necessary. You may only need one paragraphof explanation otherwise two will probably besufficient.

The third paragraph is the quote and the fourthparagraph may contain more practical facts. If therelease is about a new publication or event it can givea contact name and telephone number.

The final sheet carries ENDS, and the date. Then,‘For further information contact’ and give detailsof contacts within your company for the journalist oreditor.



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In summary

Advertising can often be the most costly and the leasteffective of marketing tools, so you should use itwisely.

You will need to make sure you are advertising in theright medium to attract your target audience.

Advertisements over a period of time build familiarityand raise awareness and credibility. One offadvertisements rarely achieve anything.

Before you advertise you need to know who buys yourproduct/service and why they buy it?

Remember A.I.D.A. Attention – Interest – Desire –Action.

As with all your communication tools think benefitsnot features.

If used correctly Direct Marketing can be a veryeffective way of marketing and winning new business.

Direct Marketing provides the opportunity for yourpotential customers to buy direct from you withoutusing a third party.

Direct mail in particular can be phased and targetedand the response monitored. It is an excellentmarketing tool for both large and small businessesalike.

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The mailing list must be as accurate as possible andup to date.

The mailshot must be targeted to the right personand must be sent to a named individual.

There must be something in the mailshot for thereader. A strong offer, clear benefits.

You must communicate the right message - talk thelanguage of your target customers.

You must make it easy for the reader to respond.

Newsletters can keep both your existing customersand target customers informed of new products andservices.

Newsletters can help to build rapport with yourexisting customers and gain loyalty from them.

By keeping your organisation’s name in front of yourprospects it will help to stimulate sales and enquiries.

If designing a corporate brochure ask who it is aimedat. Remember different people talk differentlanguages; perhaps you should have a series ofbrochures to serve different markets.

What unique selling points or benefits are you goingto emphasize in your brochure?

What image are you trying to portray? What is thepersonality of your company and how can this becommunicated?



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Before agreeing to undertake an exhibition you shouldask why you are exhibiting. What do you hope toachieve?

Make sure you have enough staff manning your stand.Do look welcoming and talk to people. Open theconversation gently.

Ruthlessly follow up all contacts made. Use mailshotsand newsletters. Invite prospects to an open day orseminar. Keep in touch with them.

Decide why you are undertaking sponsorship andwhat you hope to achieve by it?

Press coverage is an extremely effective way of raisingyour organisation’s profile.

The secret to successful press coverage is in pitchingthe right story to the right media at the right time toconvey the right message to your target audience.

There are many ‘news’ stories to tell within anorganisation. Scan the local and national newspapersto see what makes the news.

Look at your trade or professional magazines to seewho is hitting the headlines and with what kind ofstory.

Develop a journalistic eye and look for the angle - theelement that makes the story appealing and different.

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Set yourself targets for writing and distributing at leastone press release a month.

Keep releases short. One page, or one and a half pages,double-spaced.

Make sure your timing is right. Don’t send out arelease for something that happened months or weeksago.

Think up creative angles for your stories and usecreative photographs.

Use ‘News Release’ headed paper preferably withyour company name on.

The first paragraph is the key to the release. It mustcontain the whole story, the angle and yourorganisation’s name, where based and what you do.



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Chapter nine

Putting it together –Your Marketing Plan

Quite often businesses don’t undertake any of thegroundwork we have done in this book. We didn’t even lookat promotional tools until chapter seven! So don’t leap inwith a promotional tool until you have thought it through.Don’t be reactive but proactive.

You will need a mix of different promotional marketing toolsto achieve your objective, which ultimately must be to winnew business. Chose and use them wisely.

You need to consistently communicate with your targetaudience in the way they understand.

You need to consistently look at the products and servicesyou deliver and ensure these are what your customers want.

You need to consistently look at your organisation and themarket place in which it operates.

And most of all don’t forget those existing customers.Existing customers are the easiest customers to sell to. Theybuy more from you and they can recommend you to others.Make sure you get the internal aspects of your marketingright. After all it’s no good spending money on externalmarketing - the promotional tools - to find that once you’vebrought the customer in something goes wrong inside theorganisation and you lose them.

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If you employ staff then make sure they are working foryou, not against you. You want staff motivated and loyal,taking a pride in delivering to the customer. Re read thechapter that looks at the internal marketing of yourorganisation. The staff, the image, first impressions are allimportant. Return to that marketing orientated questionnairein chapter one and make sure you can tick yes to all thequestions. What do you have to do to keep your customerscoming back for more? Do it now and keep doing it.

Finally, I have laid out for you on the following pages asummary of marketing action points. If you answer theseaction points you should end up with a marketing plan foryour business that, I sincerely hope, will bring you everysuccess.

Action Point 1.

Take a look at your organisation and the services or productsit produces; are these what the customer wants?

Do you tap into your customers’ comments about yourproducts or services? Have you asked your customers whatthey want?

Start now - telephone a sample of customers or devise aquestionnaire to capture their comments after a transaction.

Gain feedback from your staff if they regularly interface withyour customers. Do this exercise regularly and analyse theresults.

PUTTING IT TOGETHER – YOUR MARKETING PLAN


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Action Point 2.

Look at your own customer base and analyse who is buyingfrom you?

What sort of people are they? What type of businesses?

Where do they come from?

How much do they spend?

Which are the most profitable sectors?

Start capturing this information on a database and analyse iton a regular basis.

Action Point 3.

Draw up a list of features for your business, and for eachproduct or service you provide. Then say to yourself, ”sowhat? - What does this feature mean to the customer?”

Put the benefit to the customer along side that feature.

Are these benefits promoted strongly in your marketingliterature? If they aren’t re write your literature andincorporate the benefits.

Action Point 4.

Look at the volume of sales generated for each product orservice.

Compare this with previous years’ performance, then plot

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your range of products and services on a life cycle.

Which products/services would you say are in the maturityor growth phase? Which in decline?

Have you any new products/services being developed orintroduced? Should you be looking at this?

What are you going to do to start this process and when areyou going to do it?

Action Point 5.

Have you developed a strong brand for your products?

What does that brand mean to you, to your staff, to yourcustomers. Have you asked them? If you all come up withthe same or similar words when talking about your productsor services, then you are branding, and successfully. If thereis a difference, or people can’t say what your productsrepresent, then you are failing.

Do your customers and target customers know what yourbrand image is? Do you? State it now. List the characteristicsof your products/services.

Action Point 6.

Carry out an Image audit on your business. Identify thoseelements that are giving out a favourable image and thosethat are giving out an unfavourable image. What are yougoing to do to turn the unfavourable images into favourableones?



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Conduct the first impressions checklists and identify areasthat need to be put right. Make a list of them and say howand when you are going to put them right.

Action Point 7.

Carry out a staff audit. How satisfied are your staff? Do youmotivate and train them? Do they know what yourorganisation stands for?

Examine your recruitment policies. Have you identified whatsort of staff you require? Do you induct them, inform andinvolve them?

Action Point 8.

Examine your pricing strategies.

Are these the correct ones?

Action Point 9.

Carry out a strengths and weaknesses analysis. These areconcerned with the internal aspects of your business. Listthem and identify action to correct the weaknesses. Say howyou are going to build on your strengths?

Carry out an opportunities and threats analysis. These areconcerned with factors outside your control in the externalmarket. Identify any opportunities for your organisation. Sayhow you are going to exploit these? Also identify the threats- what can you do to minimise these?

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Identify your competitors

Who are they?

What are they selling/providing and how?

How can you be better or different to them?

How/what do you need to change?

Action Point 10.

Set your objectives for the next year. Make sure these areS.M.A.R.T. i.e.

SpecificMeasurableAchievableRealisticTimed.

Identify the marketing strategies you are going to use to helpyou achieve your objectives.

Market PenetrationProduct/Service DevelopmentMarket ExtensionDiversification.



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Action Point 11.

For each group of target customers and/or each product orservice say what promotional tools you are going to use overthe next year to target them and what results you expect.

Focus in on who your customers are, both actual andpotential. Identify growth areas. State what action and whatpromotional tools you are going to use to target them. Putbeside this when you are going to use them, who isresponsible for seeing that they happen and how much itwill cost you.

Action Point 12.

Set your budgets and say when you are going to review yourplan.

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The Marketing Plan Summary

1. Marketing Objectives

State these. They should be:specificmeasurableattainablerealistictimed.

2. Current Situation Analysis

Give a summary of your:strengthsweaknessesopportunitiesthreats.

This section should also include information on:your competitorsyour target marketsyour key products/servicesyour staff capabilitiesyour imageyour competitive edge.

3. Marketing Strategy

Identify the key strategies your company is going to take tomeet its objectives.


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4 Marketing Action

Try and break this down by target market sectors, givingmarketing action for each sector as appropriate.

Identify the promotional tools needed to target these marketsegments. These could include:

AdvertisingDirect Marketing CampaignsExhibitionsPublicitySponsorshipSales PromotionPersonal SellingTelemarketingExisting customer relations/cross selling

initiatives.

5. Set your budget

Cost the above promotional tools and add your budget intoyour plan. Identify a budget for the development of anynew products/services.

6. Review

Build in a timetable for reviewing the plan and make sure ithappens. Take corrective action if you are not meeting yourobjectives.

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Remember: Focus: Target: Act: Review: Adapt

Good Luck!

www.rowmark.co.uk

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